Leaving behind a turbulent past: Insights of divestments from China

Amankwah-Amoah, Joseph; Zhang, Nan; Sarpong, David

Abstract

Although western multinational enterprises have increasingly gravitated towards the fast- growing Chinese market, many have often faltered and subsequently exited the market. Drawing on insight from four international firms (Best Buy, Bertelsman, Lion Nathan and NEC), and the existing literature, we develop an integrative framework on international divestments. We go on to demonstrate that none of these exits was by accident, but rather as a result of the interaction of firm-specific and market-based factors. Our analysis demonstrates divestment as a growing strategic response to environmental changes in emerging markets. We conclude by outlining implications for theory and practice.

• Journal Article Type: Article
• Publication Date: Aug 1, 2013
• Journal: Strategic Change
• Print ISSN: 1086-1718
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 22
• Issue: 5-6
• Pages: 295-306
• DOI: https://doi.org/10.1002/jsc.1941
• Keywords: China, divestment, emerging markets, corporate strategy, opportunities
• Public URL: https://uwe-repository.worktribe.com/output/929229
• Publisher URL: http://dx.doi.org/10.1002/jsc.1941